Exit and Growth Strategies for Middle Market Businesses

The report below provides a good overview of the third Quarter M&A activity in the Healthcare Industry Sector. According to data published by industry data tracker FactSet, M&A activity for North American based target companies in the Healthcare sector for Q2 2018 included 193 closed deals.

One of the notable middle market transactions was announced in April when Precision Engineered Products LLC, a subsidiary of NN, Inc., acquired Paragon Medical, Inc, a portfolio company of Beecken Petty O’Keefe & Co LP, for $375 Million in cash. The transaction expands Precision Engineered Products’ life sciences portfolio. Paragon Medical is located in Pierceton, Indiana and supplies surgical instruments and implantable components. The company was founded in 1991.

In the US, the healthcare sector is dominated by hospitals, though of the roughly 7,000 hospitals in the country around 75% are not-for-profit.

Industry Indicators

US consumer prices for medical care commodities, an indicator of healthcare costs, increased 2.4% in June 2018 compared to the same period in 2017.

US consumer prices for medical care services, an indicator of profitability for healthcare services, rose 2.5% in June 2018 compared to the same month in 2017.

Total US revenue for healthcare and social assistance rose 3.4% in the first quarter of 2018 compared to the previous year.

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